Germany Energy Storage Market - Growth, Trends, and Forecasts (2020-2025)

The energy storage market in Germany is expected to witness a CAGR of more than 10% during the forecast period. Factors, such as the increasing share of renewables in the electricity generation mix, a decline in the cost of storage batteries and solar photovoltaic panels, supportive government policies like low-interest rates on loans, and investment grants on battery systems, are driving the Germany energy storage market. On the other hand, the problem of creating adequate and intelligent power grids across the country to harness and store the growing renewable energy is still a challenge that is expected to hinder the growth of the market studied.

The primary driver of battery storage in the country is the sharp price decline of lithium-ion batteries due to their extensive use in consumer electronics and the increasing number of electric cars.

There are over 209 colocation data centers in 40 areas in Germany that use lead-acid batteries, which are the commonly used energy storage systems in data centers. Also, Germany is planning to install 30 GW offshore wind energy turbines that will require large-scale energy storage systems, creating a vast opportunity for companies in the coming years.

Several public and private initiatives in the country are cooperating for the development of energy storage technologies. The federal government is making PV battery system investment very attractive through the provision of unique incentives, including low-interest rates on loans and investment grants.